GOVERMENT HOUSE HONG KONG.
MON 30 MAR 92 10:58
PG.32
(B) For project cost increase, the standby facility may be drawn by the Authority by the amount of cost increase minus the aggregate of any drawings under sub-paragraph 2(A)(i). Cost increase is defined
as:
Estimated accrued project cost to date + remaining original budgeted cost- original budgeted cost.
The original budgeted project cost is set out in Annex B.
(C) If there is a project delay, the standby facility may be drawn after the Target Date to meet (i) the total of scheduled debt service payments on all debt ("Project Debt") incurred by the Authority to fund the airport project and which has been agreed or arranged before the date when the new airport is completed and is capable of being operated commercially ("Completion Date"); and (ii) all other costs of the Authority.
(D) For real estate revenue shortfall, the standby facility may be drawn if the cumulative total real estate revenue from core demand activities (i.e., cargo village, hotels and offices) raised before the Target Date (together with any previous drawings against the standby facility in respect thereof) is less than expected. The amount which may be drawn by the Authority will be the shortfall in revenue. A schedule of expected revenue from real estate activities is set out in
Annex A.
(E) Before drawing on the standby facility, the Authority will avail itself of any liquidated damages, insurance proceeds or other receipts arising out of delay, and after the Target Date the Authority will first avail itself of the Kai Tak surplus.
(F)
Amounts drawn under the standby facility shall be non-interest bearing and (subject to paragraph 4 (A)) shall be subordinated as to principal and Interest to all Project Debt.
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